Correlation Between Tego Cyber and ISpecimen

Can any of the company-specific risk be diversified away by investing in both Tego Cyber and ISpecimen at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tego Cyber and ISpecimen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tego Cyber and iSpecimen, you can compare the effects of market volatilities on Tego Cyber and ISpecimen and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tego Cyber with a short position of ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tego Cyber and ISpecimen.

Diversification Opportunities for Tego Cyber and ISpecimen

0.18

Correlation Coefficient

Tego Cyber  ISpecimen

Average diversification

The 3 months correlation between Tego and ISpecimen is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tego Cyber and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen and Tego Cyber is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tego Cyber are associated (or correlated) with ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Tego Cyber i.e., Tego Cyber and ISpecimen go up and down completely randomly.

Pair Corralation between Tego Cyber and ISpecimen

Given the investment horizon of 90 days Tego Cyber is expected to generate 2.4 times more return on investment than ISpecimen. However, Tego Cyber is 2.4 times more volatile than iSpecimen. It trades about 0.04 of its potential returns per unit of risk. iSpecimen is currently generating about -0.03 per unit of risk. If you would invest  3.60  in Tego Cyber on April 25, 2025 and sell it today you would lose (0.09) from holding Tego Cyber or give up 2.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Tego Cyber  vs.  iSpecimen

Tego Cyber

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tego Cyber are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Tego Cyber sustained solid returns over the last few months and may actually be approaching a breakup point.

iSpecimen

Risk-Adjusted Performance

Very Weak

Over the last 90 days iSpecimen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Tego Cyber and ISpecimen

The main advantage of trading using opposite Tego Cyber and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tego Cyber position performs unexpectedly, ISpecimen can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ISpecimen will offset losses from the drop in ISpecimen's long position.

The idea behind Tego Cyber and iSpecimen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.